LONDON (ShareCast) - (Sharecast News) - Tatton Asset Management reported another period of double-digit growth on Tuesday, as strong client inflows and rising assets under management lifted revenue and profit in the first half.
The AIM-traded group said total AuM and assets under influence increased to £25.8bn by 30 September, driven by £1.7bn of organic net inflows and consistent investment performance, and noted that AUM/I had since risen further to £27.1bn.

Revenue for the six months ended 30 September rose 18.6% to £25.7m, while adjusted operating profit increased 20.4% to £13.1m, maintaining a margin of just over 51%.

Adjusted fully diluted earnings per share grew 17.2% to 16.02p.

The group ended the period with net cash of £34.1m and increased its interim dividend by 26.3% to 12p.

Net assets stood at £55.9m.

AUM/I expanded 29.6% from a year earlier, and by an annualised 36.9% since March.

Net inflows averaged £281m per month during the period, broadly consistent with the strong run-rate achieved last year.

The number of IFA firms using Tatton rose to 1,170, with client accounts increasing to 167,150.

It said the Paradigm services division also reported growth, with Paradigm Mortgages completions up 30.3% to £8.6bn and its member base rising to 1,960 firms.

Paradigm Consulting performed in line with expectations.

"Tatton has delivered another strong period of growth, demonstrating the continued strength of our proposition and the depth of our partnerships with advisers," said chief executive Paul Hogarth.

"We remain deeply appreciative of the trust our clients place in us to manage their investments.

"During the period, we sustained the momentum of organic net inflows achieved throughout last year, with inflows reaching £1.7bn.

"Combined with consistent investment performance, AUM/I1 rose to £25.8bn, a 36.9% increase on an annualised basis."

He said the group continued to attract new IFA firms and deepen existing relationships, underscoring "the scalability and resilience of our business model," and reiterated confidence in reaching its target of £30bn AUM/I by the end of the 2029 financial year despite the scheduled conclusion of the Perspective contract in early 2026.

Hogarth added that Paradigm "once again demonstrated its resilience" through higher mortgage completions and steady consulting performance.

Looking ahead, he said: "We remain mindful of the ongoing macroeconomic and geopolitical challenges that may contribute to periods of market volatility.

"Despite these external headwinds, Tatton is well positioned to build on the strong progress made to date.

"Our strategy remains clear and focused ... the group has entered the second half with strong momentum and confidence in delivering results in line with market expectations for the full year."

At 1214 GMT, shares in Tatton Asset Management were down 0.28% at 708p.

Reporting by Josh White for Sharecast.com.

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